Key notes from review of director meeting minutes 1. 22/12/18 It was noted that Buckingham is to acquire a controlling interest in companies based in Germany and Estonia with settlement expected to occur on 31 March 2019. 2. 28/02/19 The chairman observed that in recent months there has been in an increase in customers returning goods under the warranty provided. He observed that the task of determining the appropriate warranty liability at 30 June 2019 is likely to be more difficult and a material balance. 3. 12/03/19 The directors noted that they will engage a property valuer to assess the fair value of the Group’s investment properties at 30 June 2019. Explain what audit significance each of the THREE matters raised would have.
Key notes from review of director meeting minutes 1. 22/12/18 It was noted that Buckingham is to acquire a controlling interest in companies based in Germany and Estonia with settlement expected to occur on 31 March 2019. 2. 28/02/19 The chairman observed that in recent months there has been in an increase in customers returning goods under the warranty provided. He observed that the task of determining the appropriate warranty liability at 30 June 2019 is likely to be more difficult and a material balance. 3. 12/03/19 The directors noted that they will engage a property valuer to assess the fair value of the Group’s investment properties at 30 June 2019. Explain what audit significance each of the THREE matters raised would have.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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Key notes from review of director meeting minutes
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1. |
22/12/18
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It was noted that Buckingham is to acquire a controlling interest in companies based in Germany and Estonia with settlement expected to occur on 31 March 2019.
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2. |
28/02/19 |
The chairman observed that in recent months there has been in an increase in customers returning goods under the warranty provided. He observed that the task of determining the appropriate warranty liability at 30 June 2019 is likely to be more difficult and a material balance.
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3. |
12/03/19 |
The directors noted that they will engage a property valuer to assess the fair value of the Group’s investment properties at 30 June 2019.
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- Explain what audit significance each of the THREE matters raised would have.
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